Conventional Loans — Clean Credit, Competitive Rates

Flexible down payments from 3% to 20%, competitive rates without PMI at 20% down. We specialize in streamlining conventional loans for homeowners with strong credit and stable income.

28+
Years Experience
250+
Zillow ⭐ Reviews
21-Day
Closing Guarantee

What Is a Conventional Loan?

The Foundation of Modern Mortgages

A conventional loan is a mortgage that isn't backed by the federal government. Instead, it's insured by private companies, which allows us to offer more flexible terms and competitive rates to qualified borrowers.

Conventional loans are ideal for buyers with strong credit, stable employment history, and sufficient down payment. We specialize in making the process clear, transparent, and fast—our 21-day closing guarantee reflects our commitment to excellence.

Unlike FHA or VA loans, conventional mortgages offer borrowers the freedom to own property without government involvement, and at 20% down, you eliminate mortgage insurance entirely, saving thousands over the life of your loan.

Conventional Loans Are Best For:

  • Buyers with credit scores of 620+ (740+ for best rates)
  • Stable employment and income history
  • Down payments from 3% to 20%
  • Primary residences, second homes, and investment properties
  • Those seeking competitive rates without government programs
  • Borrowers looking to avoid FHA insurance premiums

Why Choose a Conventional Loan?

We bring clarity, speed, and expertise to the conventional lending process.

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Competitive Rates

Access some of the market's best rates when you qualify. Our relationships with lenders ensure you get the terms you deserve.

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Flexible Down Payments

Put down as little as 3% or as much as 20%. We work with various down payment options to fit your financial situation.

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No PMI at 20% Down

Avoid mortgage insurance by putting down 20%. That's thousands saved over the life of your loan.

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Wide Property Eligibility

Finance primary residences, second homes, investment properties, and more. We're flexible on property types.

Conventional Loan Requirements

Here's what we look for to approve your conventional mortgage.

Credit Score

Minimum 620. Best rates at 740+. We work with lenders across the credit spectrum.

Debt-to-Income Ratio

Under 43% (sometimes up to 50% with compensating factors). We evaluate your full financial picture.

Income & Employment

Stable employment history, typically 2+ years in your current field. Self-employed? We have programs for you.

Down Payment

3–20%. The more you put down, the better your rates and terms.

Savings & Reserves

Proof of liquid assets and savings. Lenders want to see you have a financial cushion.

Conforming Loan Limit

Up to $806,500 (2025). Loans above this are considered jumbo and have different terms.

Fixed Rate vs. Adjustable Rate Mortgages (ARM)

Understanding your rate options.

Feature Fixed-Rate Mortgage ARM (Adjustable-Rate Mortgage)
Interest Rate Stays the same for the entire loan term Fixed for initial period (3, 5, 7, 10 years), then adjusts annually
Monthly Payment Consistent and predictable Low initially, increases after the fixed period
Best For Long-term homeowners; those planning to stay 7+ years Short-term owners; those planning to sell or refinance within 5–7 years
Rate Starting Point Slightly higher initial rate Lower initial rate (teaser rate)
Risk Level Low—predictable, no rate shock Higher—payment can increase significantly after fixed period
Caps & Limits N/A Rate increases are capped (periodic and lifetime caps)

Our Process — From Application to Keys

We've streamlined conventional lending into four clear steps.

1

Pre-Approval

Discuss your finances, goals, and timeline. We run your credit and verify income to get you pre-approved quickly.

2

Find Your Home

Your pre-approval letter puts you in the buyer's seat. Alex advises on loan strategy as you house hunt.

3

Underwriting

We submit your application and documentation. Our team works with underwriters to clear conditions and move toward clear-to-close.

4

21-Day Close

Appraisal, title, final walkthrough, and closing table. We deliver our closing guarantee: ready in 21 days.

Frequently Asked Questions

Have questions? We've answered the most common ones below.

What's the difference between conventional and FHA loans?

Conventional loans are not backed by the government; FHA loans are insured by the Federal Housing Administration. Conventional loans typically require higher credit scores and down payments, but offer better rates and no mortgage insurance at 20% down. FHA loans are more flexible on credit and down payments (as low as 3.5%) but include government insurance premiums that increase your monthly cost.

How quickly can I get approved for a conventional loan?

Pre-approval typically takes 1–3 business days once we have your financial documents. From application to clear-to-close usually takes 15–25 days. Alex backs this with a 21-day closing guarantee, which means we commit to being ready at closing within that timeframe. Delays are rare, and we communicate every step of the way.

Can I avoid PMI with a conventional loan?

Yes. If you put down 20% or more, PMI is not required. PMI protects the lender if you default; it's typically 0.5–1.5% of your loan amount annually and is rolled into your monthly payment. With a 20% down payment, you skip this cost entirely—a significant savings over time. For down payments under 20%, PMI applies until you reach 20% equity.

What if I'm self-employed or have irregular income?

We have specialized programs for self-employed borrowers. Lenders review 2 years of tax returns and business income statements to evaluate stability. We also offer bank statement and asset-based programs. If you're self-employed, don't assume you won't qualify—Alex has years of experience getting approval for freelancers, entrepreneurs, and business owners. Call us to discuss your specific situation.

Ready to Get Pre-Approved?

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Call Alex

(714) 470-6091

Available Mon–Fri, 8 AM–6 PM PT

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Email

info@alexshik.com

Typically respond within 2 hours

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About Alex

Senior Mortgage Loan Officer

28+ years helping families achieve homeownership

Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. NMLS #335813. Equal Housing Lender. This is not a commitment to lend. Rates and terms subject to change.